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Offshore Renminbi Stronger

The People’s Bank of China strengthened the mid-rate for the renminbi on Monday by 0.54% against the US dollar, the greatest increase since 2005, AsiaFirst reported. The raising of the renminbi fix comes nearly two months after the central bank vowed a revamp of the way the Chinese currency is controlled, and follows strengthening of the offshore renminbi, which is not subject to a trading band. When the PBoC devalued the local currency by about 3% in August, it announced that markets would be given a greater say in how the renminbi was valued, although investors’ ability to trade the currency +/- 2% from the set mid-point has not changed.